Low Sales of Chinese Electric Vehicles in US Market
Solar Industry Says "Need to See Detailed Situation"
As the United States plans to significantly raise tariffs on strategic industries such as Chinese-made electric vehicles, an analysis suggests that the actual impact may be limited.
On the 13th (local time), major foreign media reported that the new U.S. tariffs on China are expected to have a limited effect on Chinese industries.
On the same day, Jake Sullivan, White House National Security Advisor, said that President Joe Biden will soon announce specific tariff imposition plans. Recently, foreign media including Bloomberg reported that the U.S. plans to announce new tariffs targeting Chinese-made electric vehicles, solar panels, and medical supplies. In particular, the Wall Street Journal (WSJ) reported that tariffs on electric vehicles will be raised fourfold from the current 25% to 100%.
However, according to data from the China Passenger Car Association, the only Chinese automaker exporting electric vehicles to the U.S. in the first quarter of this year was Geely Group, with just 2,217 units. Geely sells electric vehicles in the U.S. market under the "Polestar" brand.
Even looking at Polestar alone, the tariff increase is not expected to have a significant impact on the company’s operations. Thomas Ingenlath, CEO of Polestar, stated that starting this year, production will begin in South Carolina targeting the U.S. and European markets, and the company is working to produce more vehicles outside China.
Foreign media also analyze that tariffs on solar panels will not have a major impact on China. Tariffs are already applied when exporting to the U.S., and recently, Chinese companies manufacturing panels in Southeast Asia have also become subject to tariffs.
According to the U.S. think tank Center for Strategic and International Studies (CSIS), over 80% of solar panels are currently manufactured in China, and production costs in China are 60% cheaper than in the U.S. Last year, China exported $3.35 million worth of solar cells to the U.S., which accounts for less than 0.1% of China’s total exports. In 2023, the export value of solar panels to the U.S. was $13.15 million, about 0.03% of China’s solar panel exports.
Foreign media cited industry insiders saying that because the supply chain for solar panel production equipment is complex, the impact of the new U.S. tariffs on equipment sales will depend on the tariff details.
The U.S. is also expected to impose tariffs on Chinese-made medical supplies such as syringes and personal protective equipment. According to WTO data, China exported $30.9 billion worth of medical supplies to the U.S. in 2022, which accounts for about one-fifth of China’s total medical supply exports.
Tariffs on Chinese medical devices were waived in December 2020 due to the COVID-19 pandemic and have been extended several times as the pandemic continued. The U.S. Medical Device Manufacturers Association and others are demanding the withdrawal of the tariff exemption now that the COVID-19 pandemic has ended.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
